Federal budget 2018: More cash to sweeten work deal for seniors

Pensioners and self-funded retirees will get almost half a billion dollars in budget sweeteners that allow them to work more.

For the first time, retirees with their own businesses will be ­allowed to earn $300 a fortnight, without penalty.

Pensioners and self-funded retirees will get almost half a billion dollars in budget sweeteners that allow them to work more and for longer without that income eating into their welfare payments.

The government has underwritten a $227 million expansion of the Pension Work Bonus scheme that will allow pensioners to earn up to $7800 a year without losing any of their Age Pension. And for the first time, retirees with their own businesses will be ­allowed to earn that amount, $300 a fortnight, without penalty.

The Coalition has also turbo-charged a little-known government-backed reverse mortgage program that allows pensioners to borrow against the value of their home to top up their pensions to the full rate each fortnight.

Now, the rules have changed, and everyone over the Age Pension age will be eligible to borrow 150 per cent of the full pension, or $1200 a fortnight, to be repaid from their estate.

Scott Morrison said the broader scheme would boost the income for a couple by as much as $17,800 a year.

“And we will oppose unfair tax grabs on retirees and pensioners, by enabling everyone who has invested in Australian companies that issue franked dividends, to keep their tax refunds,” he said.

The budget speech comments were a clear shot at Labor, which previously has leveraged tough budget cuts to attack the Coalition on ageing issues.

The budget includes measures worth $190m to boost the employability and skills of Australians older than 45 who are having difficulty finding work, and for older people who have been retrenched or are considering early retirement.

Employers again will be eligible for bonuses of as much as $10,000 for hiring older Australians.